Wednesday, July 31, 2013

"Marc Faber is an economic authority on global macroeconomics, capital markets, and investment and the Editor & Publisher of "The Gloom Boom & Doom Report". He spoke with The Prospect Group about easy monetary policy and credit growth, asset price volatility, and the Fed."

Tuesday, July 30, 2013

"If you look back at 2007, before the crisis occurred, and today, the level of credit in the world has increased. The imbalances have also increased.

And the sovereign credit of countries has essentially diminished in quality. Now we have a huge bond market rally because of artificially low interest rates, but I think the next stage in the rolling crisis that we will have will be sovereign defaults."

Sunday, July 28, 2013

"Well, I think investors have a misconception about what inflation is because it is essentially an increase in the quantity of money and credit. We have wage deflation in the world in real terms, for sure. In other words, real wages are going down and the cost of living everywhere are going up. That is why you have social unrest in North Africa, in the Middle East, in Turkey, in Brazil, and it will spread because the average person on the street hasn't participated in the huge asset inflation that has been going on in high-end properties, Mayfair properties, Fifth Avenue, Madison Avenue, the Hamptons and in equities and until recently in bonds and commodities."

Friday, July 26, 2013

At least if a hedge fund loses money, he stands up and says, ‘Yes, I f*cked up, or I messed up. I lost money.’ But the central bankers will always, always find an excuse that they are not guilty of any mistakes in their policies. It’s a very vicious and despicable class of people (central bankers).

Tuesday, July 23, 2013

Last week I had the honour of interviewing the great Marc Faber. Marc Faber is best known for his monthly investment newsletter, “The Gloom, Boom and Doom Report”. He is regularly seen on major financial news channels such as Fox, Bloomberg, CNBC, and many more. I was able to ask Marc a number of questions that weight heavily on the minds of our viewers. These topics range from the manipulative acts of the Federal Reserve, to the possibility of an outright gold confiscation. I was also able to ask Marc how he sees this insane experiment with fiat money ending. Below are a few of the questions you will hear throughout this interview:

Do you believe that the Federal Reserve will end QE in the future? If so what would happen to our financial system?

Do you believe that the United States is still the world’s dominate financial power or do believe that China is now running the show?

Do you think physical gold and silver are protected from confiscation if they are held outside the banking system and stored at a respected facility like Brink’s?

If fiat money printers such as the United States and Japan print unlimited amounts, what will prevent them from printing many more billions and simply buy gold bullion as their final desperate act?

How do see this all ending Marc?

In the end it became shockingly clear that Marc believes central banks around the world will continue printing money until the system comes crashing down. They know nothing else. Not surprisingly, Dr. Faber has little faith in the ability of central bankers. Plain and simple, he sees them as being completely incompetent. As always the controversial Marc Faber raises some intriguing points that make you stop and think. Regardless of whether you agree with his analysis or not, he makes for an interesting interview. I hope you enjoy. Thanks.

Tuesday, July 16, 2013

It’s going to end in disaster. But it’s not going to end at the hand of central bankers because I know very well how they think....

They are not going to tighten monetary policies any time soon. They are in the driver’s seat in the sense that they will always find an excuse to print more.

They will say, ’OK we have to increase the purchases of assets because now the yield on Treasury bonds has gone up substantially, from less than 1.5% on the 10-Year note a year ago, to 2.68% as of today.’ So they will say, ‘That may damage the economy, so we have to buy more assets.’

Sunday, July 14, 2013

The Federal Reserve and other central banks around the world, they think they can essentially steer economic activity by printing money. This money printing has a number of unintended consequences that will eventually be very costly.

It’s not the first time the Fed has intervened. They intervened after the S&L crisis, after the Tequila crisis, after LTCM in 1998, and then after (the year) 2000 when the Nasdaq collapsed. They kept interest rates artificially low which led to a credit bubble, the housing boom and subsequent collapse.

You can postpone the problems by printing money, but then the problem comes back to an even larger extent.

Wednesday, July 10, 2013

Dr. Marc Faber, the Swiss fund manager and publisher of the Gloom, Boom and Doom Report always enjoys illuminating the Wall St. talking heads and displaying his awesome command of numbers, dates and predictions.

The Fed's 'tapering' comments have ramped up market volatility and Faber gives some advice for short and long-term strategies. For example: "The best course of action is to actually not buy anything, but rather to reduce positions on a rebound," Faber said: Also, "New highs in emerging markets and in high yield bonds are out of the question, and if it happened in the S&P, which I don't believe, it would be driven by very few stocks. Longer term, the market is far from oversold. It still has considerable downside risk everywhere," he said.

Monday, July 8, 2013

"If you say that if he means what he says, then you believe in Father Christmas. He said if the economy does not meet the expectations of the fed in one years' time, they will consider additional measures. In other words, if the economy has not fully recovered by mid-2014, more QE will be forthcoming. As I said already three years ago, we are going to go with the Fed to QE99."

Saturday, July 6, 2013

“The Chinese economy is much weaker than the official statistics suggest. At the present time, the Chinese economy is, at the very best, growing at 4% per annum. Without huge credit expansion there would be no growth at all.”